HBM's new development team, part of an organizational overhaul of the company's semiconductor division, aims to consolidate R&D functions and strengthen research efforts, according to sources.

Vice President Sohn Young-soo, an expert in high-performance DRAM design, will lead the team, Yonhap News Agency reports.

This reshuffle is the first since Vice President Jun Young-hyun took office in late May.

The HBM team will focus on R&D of the next generation HBM4 products, as well as HBM3 and HBM3E. The move underscores the tech giant's commitment to improving its R&D structure for HBM, a high-performance DRAM in high demand, particularly for Nvidia's graphics processing units, which are key to AI computing.

Samsung has developed industry-leading 12-layer HBM3E products, which pass Nvidia quality testing. But the market has been led by rival SK hynix Inc. with its latest HBM3E.

To strengthen its position, Samsung also reorganized its advanced packaging equipment and equipment technology laboratory to improve its overall technological competitiveness. The latest changes come amid efforts to improve Samsung's competitiveness in the booming HBM market. The company recently replaced the head of its semiconductor business with Jun and began recruiting for more than 800 positions, including roles in developing and verifying drivers for next-generation DRAM solutions.

Samsung Electronics' chip business has struggled with slow sales in recent years, posting an operating loss of more than 15 trillion won ($11 billion) last year. It experienced five consecutive quarters of operating losses, from the fourth quarter of 2022 to the fourth quarter of 2023. However, in the first quarter of 2024, the chip business recovered to achieve an operating profit of 1.91 trillion won with 23.1 trillion won in sales. , thanks to the increase in memory chip prices.

Samsung will publish its results forecasts for the second quarter on Friday.